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Posted by / 03-Jan-2018 10:11

“Now consolidated as Kellstrom Commercial, it will move to Chicago.” The new Kellstrom Commercial will maintain a sales office in south Florida, near Kellstrom's other businesses, and the two companies are still determining how many of the original staff will move to Chicago.

The commercial portion of Kellstrom's business was never a manufacturer, but distributed new parts made by companies such as Britain's Meggitt.

These included probes and sensors used on a wide variety of engines.

Air Liance, in contrast, was founded by airlines—originally —specifically to “understand what airlines need to run the supply chain and what they need from the maintenance perspective to keep flying,” Musselwhite summarizes.

Smart planners can see how different parts stocks complement each other, or do not.

And financial markets are apparently shedding at least some of their wariness of aviation.

Scale is essential for “discriminators” like breadth of service and geographic reach, so “integration is proceeding rapidly,” Musselwhite says.

Of the Kellstrom-Air Liance combination he firmly believes, “one plus one equals three.” That seems to be the view of most experts in this tricky parts distribution business.

“Sheer size is important to stay in that game,” Musselwhite observes.This shop has capabilities for both military and commercial repair, but has concentrated on defense work in the past.“The other piece, commercial aero, is what acquired Air Liance,” Musselwhite explains.Airlines have proven to be a lot more flexible, and thus survivable, than they often were in the past. Two recent transactions are major and probably point the way toward the future shape of the used parts market.In mid-May, Kellstrom Commercial Aerospace acquired Air Liance Materials from .

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Depending on definitions, there may be 200-1,000 companies in the commercial supply chain business now.

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